Nigeria is far behind in modernization and to the worsen the matter is the government behavior towards innovations and modern technologies. Trading cryptocurrency in Nigeria may look complicated since both the government and authorities are not in full support of cryptocurrency business. This account to some of the illegal arrest of some Nigerian youths who are currently into internet business which include those who are into trade of cryptocurrency in Nigeria, brandishing them as fraudsters.
Irrespective of this major hindrance, some fragment of Nigeria youths still engages on cryptocurrency trading business, not just only as an additional source of income, but to some, as a main source of income.
According to Downmarkets,
The Nigerian Deposit Insurance Corporation NDIC issued a warning to citizens of the country about the risks of using cryptocurrencies due to the fact that the Central Bank of Nigeria (CBN) does not recognize their legitimacy, reports the Business Post Nigeria news portal. As the newspaper notes, this is the repeated warning from government agencies directed against the use of cryptocurrency trading in Nigeria. Previously, various government agencies have repeatedly made similar statements against the new form of money
Having known all the above stated factors, which has acted as hindrance and impediment to the progress of trade of cryptocurrency in Nigeria, it still didn’t stop the few serious minded Nigerians from venturing into cryptocurrency trade here in Nigeria.
In this article, we are going to teach you how to start a cryptocurrency trade business here in Nigeria.
Steps on how to trade cryptocurrency in Nigeria
- Create a Plan your Business
- Form a legal entity (if you want to trade cryptocurrency here in Nigeria without getting into troubles)
- create a corporate bank account
- Get permits and license
- Lunch your cryptocurrency trade business
If you are really interested in cryptocurrency and intend to venture into cryptocurrency trading, please kindly read this content to the end. The content will guide you on how you can trade cryptocurrency in Nigeria without running into problems or falling into the trap of the officials who may penalize you or even lock you up for fraud which you may not necessarily be into. So please we advise you to carefully and gradually read. You can also jot down some important points you think you may need later in the future.
For every successful business you can think of today there was a clear and succinct business plan properly written down for it. According to Cryptofaq, for a cryptocurrency business, be it trading, mining or otherwise to be successful, the owner must have a well written business plan.
Below are the sections of a properly written cryptocurrency business plan
This is the first section of every business plan; it contains the summary of what the business is to look like and possibly other vital information in a summarized manner. A well written executive summary will not only simplify the complexity of your intended business but will also attract investors as most people may not have the time to read other detailed part of your business plan.
Brief explanation of your company, what you guys are going into; which is cryptocurrency trade business here in Nigeria, your goals, vision and mission, expected company staffs, possible worth of the company, your intended customer audience, the services you intend to offer and products to intend to sell. Make the company description as detailed as possible and also capitalized on the company strength, but also speak a little on her weakness and possible losses she is likely to encounter so that your investors will know what they should be expecting. Most importantly, don’t be afraid to mention figures in matters of finance.
This is also an important part of your business plan. It contains data gotten from market survey you have done on the possibility of the success of your business. Market analysis also contain your customer’s information’s such their income level, class in the society and etc.
Every business has a competitor or competitors. Having information’s about them gives you upper hand and put you a step ahead to success. You need to run research on market competitiveness of cryptocurrency trade business in Nigeria.
Breakdown of Your Products and Services
This include the type of cryptocurrency trading or coins you intend to venture into.
Your plans on how you intend to get people to know what you are into, how you intend to create awareness in the Nigeria crypto market, advertisement strategies and so on.
Source of Funding
Funding is the most important part of every business planning, questions like;
How do I intend to raise fund?
How much do I currently have at hand?
Are my expecting any financial support from anybody, and do I have any financial backup incase the worst happen in the future? Must be thoroughly examined and answered. Read up How to Create a cryptocurrency business plan in Nigeria
Form a legal entity (if you want to trade cryptocurrency here in Nigeria without getting into troubles)
A legal entity we mean is simply a government registered business, which could be sole proprietorship, partnership, or limited liability company. The business should be registered with Nigeria Corporate Affairs Commission.
Register with your intended business name, with you being the sole owner of the business.
This kind of business registration is referred to as Business Name registration.
Partnership among two, three to ten persons. We advise you to option for this if you need startup capital and you don’t have enough money for that. This could just be done among your friend who are willing to own the business together with you.
According to howtostartanllc.com A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, you should check with your state if you are interested in starting a Limited Liability Company.
Owners of an LLC or Ltd depending on the country are called members. Most states do not restrict ownership, so members may include individuals, corporations, other LLCs or Ltds and foreign entities. There is no maximum number of members. Most states also permit “single-member” LLCs, those having only one owner.
A few types of businesses generally cannot be LLCs, such as banks and insurance companies. Check your state’s requirements and the federal tax regulations for further information.
You need to create a corporate account using your registered business name or company name. This is necessary to stay legal and to avoid unlawful sanctions and extortions.
This may not be necessary due to the fact that in Nigeria, cryptocurrency regulatory bodies are yet to exist. Though you still have to obtain other necessary permits and license example are the revenue and etc.
After accomplishing all the above stated steps, the last but not the least is to lunch your business and start operating.
Due to the nature of cryptocurrency and the fraudulent activities which Nigeria is known for globally, the use of cryptocurrency has been on the rejection in the country as the government do not approve it and is doing her best to discourage the public from using cryptocurrency as a means of payment and transactions. And what made things more worst, is the nature of crypto which is prone to fraud and useful, for illegal activities.